The Social Security Administration calculates the COLA by examining the CPI-W indices from the third quarter (spanning July to September) of the current year and contrasting them with those from the same months of the prior year. The resulting differential informs the COLA increment.
The 2024 COLA, revealed this past October, stands at an increase of 3.2%. This uptick will be mirrored in next year’s adjustments to various public assistance programs. The augmentation is grounded in the annual movement of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a metric that tracks changes in the cost of living for working-class urbanites.
Projected increase in Social Security individual benefits
With the 3.2% enhancement, the typical retired worker’s payment in 2024 is expected to climb by about $57. This adjustment would elevate the average monthly benefit to approximately $1,885. Remember, this number is an estimate; the actual increase may be more or less depending on a variety of personal factors. To gauge your own benefit uptick for 2024, you can apply the 3.2% increase to your current benefits.
In the current year, the ceiling for monthly SSI benefits is set at $914 for an individual and $1,371 for a qualifying married couple. With the forthcoming adjustments, these figures are poised to ascend to $943 and $1,414.80, respectively, for the subsequent year. To calculate what this hike means for you, multiply your existing monthly benefit by 1.032.
Timeline for the Benefit Increase and Confirmation
The Social Security Administration plans to initiate the notification process through mailings starting in early December. These mailings are designed to update the more than 71 million Social Security beneficiaries about their new benefit rates. Recipients are thus provided with ample information about their adjusted benefits via this official notification.
It is designed for the new benefit amounts to be automatically reflected in the checks distributed at the beginning of 2024. This transition aims for efficiency and minimal disruption, ensuring that beneficiaries are kept in the loop regarding the upcoming financial changes. By the dawn of the new year, all individuals receiving Social Security should have a transparent breakdown of their updated benefits, equipping them with the necessary details to manage their economic resources for the year ahead.